Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Rcm

Vatsal (Student) (453 Points)

17 August 2016

Whether service reciever can take the cenvat credit of his liability?

Reply
Follow
Share

3 Replies

Vineeth PN (Account Assistant) (687 Points)
Replied 17 August 2016

Input services you can take credit. for egg. if you are a manufacturer you hav to pay rcm for manpower 100% that you can take credit on next month.

Upgrade to CAclubindia Pro. Subscribe Now!

Vatsal (Student) (453 Points)
Replied 18 August 2016

Labour charges is under manpower?

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 19 August 2016

Dear Vatsal,

I want to draw your attention on Proviso to Rule- 4(7) which says and I quote,

Provided that in respect of input service where whole or part of the service tax is liable to be paid by the recipient of service, credit of service tax payable by the service recipient shall be allowed after such service tax is paid.

Therefore, the credit can be taken on payment basis.

Hope, above information serves your purpose.